Service Sector

India's service sector are businesses that provide services to other companies, groups, or individuals. These businesses can include consulting firms, accounting and legal firms, hospitality services, educational establishments, and security services.

MSMEs are classified based on their annual turnover, whether they operate in the manufacturing or service sector, and other parameters. As of June 2020, the categories are:

Micro enterprise: Investment less than Rs. 1 crore and turnover less than Rs. 5 crores
Small enterprise: Investment less than Rs. 10 crore and turnover up to Rs. 50 crores
Medium enterprise: Investment less than Rs. 20 crore and turnover up to Rs. 100 crores

According to data from the Udyam portal, MSMEs in the service sector make up a larger proportion of the MSME sector than those in the manufacturing sector. As of July 2024, Indian entrepreneurs had registered 8.65 lakh enterprises under the service sector, compared to over 5.37 lakh enterprises under manufacturing.

The service sector makes up more than 50% of GDP and remains the fastest growing sector, while the industrial sector and the agricultural sector employs a majority of the labour force. The Bombay Stock Exchange and National Stock Exchange are some of the world's largest stock exchanges by market capitalization.

Some businesses that fall under the MSME service sector

Consulting: Management and placement services, accounting and legal firms
Education: Training institutes
Healthcare: Exercise and wellness, X-ray clinics
Hospitality: Services
Security: Electronic surveillance and security
IT: Solutions like application service providers, server banks, and smart card customization
Farm equipment: Servicing agricultural equipment like tractors, pumps, and ring boring machines
Back-office operations: Computerized data
Retail: Low-capital retail trade enterprises
etc...,

Service Sector

Some businesses that fall under the MSME service sector

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